Chapter 1.1

Question 1

Product

Answer 1

both good and services

Question 2

Goods

Answer 2

physical products (ex. cars,computers)

Question 3

Services

Answer 3

intangible products (ex. haircuts, education)

Question 4

Consumer goods

Answer 4

the physical and tangible goods sold to the general public

Question 5

Capital goods

Answer 5

physical goods that are used by industry to aid in the production of other goods and services

Question 6

Factors of production

Answer 6

the resources needed by business to produce goods or services (the business inputs) -land/natural resources, labour, capital, enterprise

Question 7

Business functions

Answer 7

Human resources, Finance, Marketing (product, price, promotion, place), Operation

Question 8

HR

Answer 8

responsible for managing the personnel of the organization

Question 9

Finance

Answer 9

in charge of managing the organization’s money

Question 10

Marketing

Answer 10

responsible for identifying and satisfying the needs and wants of customers

Question 11

Operations

Answer 11

responsible for the process of converting raw materials and components into finished goods, ready for sale and delivery to customer

Question 12

Primary Sector

Answer 12

the sector that is involved with the extraction, harvesting, and conversion of natural resources

Question 13

Secondary sector

Answer 13

manufacturing or construction of products

Question 14

Tertiary sector

Answer 14

providing services

Question 15

Quaternary sector

Answer 15

involved in intellectual activities that generate and share information

Question 16

Sectoral change

Answer 16

shift in the relative share of national output and employment that is attributed to each business sector overtime

Question 17

Factors of sectoral change

Answer 17

Higher household incomes, more leisure time, greater focus on customer services, increasing reliance on support services

Question 18

Entrepreneur

Answer 18

an individual who plans, organizes and manages a business

Question 19

Intrapteneur

Answer 19

an employee who thinks and acts as an entrepreneur within a section of the organization

Question 20

Reasons to start a business

Answer 20

Growth, earning, security, transference and inheritance, hobbies, autonomy, challenge

Question 21

Challenge to start a business

Answer 21

lack of finance, cash flow problems, marketing problems, unestablished customer base, people management problems, legalities, production problems, high production costs, poor location

Question 22

Business plan

Answer 22

a report detailing how a business services sets out to achieve its goals and objectives

Question 23

Elements of business plan

Answer 23

the business, the product, the market, the finance, the personnel, the marketing

Question 24

Chain of production

Answer 24

tracks the stages of an item’s production, from the extraction of raw materials used to make the product all the way through to it being delivered to the consumer

Question 25

Business

Answer 25

a decision making organization that provides goods and services